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Canada Rare Earth Announces Financial Results for the Six Months Ended September 30, 2017

November 28, 2017

 

VANCOUVER, BRITISH COLUMBIA - Canada Rare Earth Corp. ("Canada Rare Earth" or the "Company") (TSX.V: LL) is pleased to announce the filing of the unaudited financial statements and related management discussion and analysis for the six months ended September 30, 2017.

 

The financials and analysis can be found on our website (www.canadarareearth.com) and on SEDAR.com. They are summarized and highlighted as follows:

Canada Rare Earth generated revenues of $1,139,677 during the six months ended September 30, 2017, a 600% increase over revenues generated during the entire year ended March 31, 2017. Revenues in the three months ended September 30, 2017 exceeded revenues in the June 2017 quarter by 17% increase while maintaining margins.

With increasing levels of sales, consistent margins and strict attention to controlling costs we have improved our loss from operations by $187,331 compared to the six-month period ended September 30, 2016. The operating loss in the most recently completed six month period was $57,367 which included amortization of $9,947 and share based payments of $8,769.

The Company generated net cash of $50,528 from operating activities in the six months ended September 30, 2017, an improvement of $295,180 compared to the six months ended September 30, 2016.

A summary of the revenues and expenses for the six months ended September 30, 2017 compared to six months ended September 30, 2016 respectively is as follows:

 

Six Months Ended

September 30, 2017

September 30, 2016

Comment

Revenues

$ 1,140,000 

$             3,000 

Expenses

   Cost of sales

   1,041,000 

         2,000 

Operating     expenses    

   157,000 

         246,000 

36% decrease

Other, net

103,000 

    

(19,000)

Impact of stronger CAD on long term assets

Net loss

$ (161,000)

$ (226,000)

29% improvement – current six month loss includes: $110,000 of unrealized non-cash foreign exchange loss on long term assets and $19,000 of non-cash amortization and share-based compensation

 

 

 

A summary of the balance sheets as at September 30, 2017 and March 31, 2017 respectively is as follows:

 

 

September 30, 2017

 

March 31, 2017

 

 

Assets

 

 

 

 

 

Current Assets

$282,000

$309,000

 

 

Non-current assets

1,791,000

1,886,000

 

 

Total

2,073,000

2,195,000

 

 

 

 

Liabilities and Equity

 

 

Accounts payable and accruals

163,000

144,000

 

$85,000 due to insiders

Trade finance loans

172,000

161,000

 

$110,000 due to insiders

   Shareholders' equity

1,738,000

1,890,000

 

 

Total

$ 2,073,000

$ 2,195,000

 

 

 

In the two months following September 30, 2017, we completed more than $250,000 of sales of rare earth products and we are in progress of closing additional $160,000 in the next two weeks.

Tracy A. Moore, CEO of Canada Rare Earth explained, “We are increasingly pleased with the trading platform we have developed and are continuing to build on. The trading activities consistently provide an increasingly significant and reliable contribution to our financial position.”

Salil Dhaumya, CFO of Canada Rare Earth added, “We are pleased with the results and we’ll continue to improve our gross margins. The management team has an unwavering commitment to increase shareholder value.”

Peter Shearing, COO of Canada added “We are studying supply opportunities in over 10 countries to enhance the flow of rare earth materials to our customers with their increasing levels of demand. Simultaneously we are developing our concentrate enhancement and separation capabilities.”

On behalf of the Board

Tracy A. Moore, CEO and Peter Shearing, COO

ABOUT CANADA RARE EARTH CORP.

Canada Rare Earth is developing an international integrated business network within the global rare earth industry. Our immediate key focus is to generate revenues and positive cash flow from a variety of profit centers in the rare earth production and sales chain by sourcing, adding value and selling rare earths in all stages and forms. We are in the process of establishing our own mining, concentrating and refinery capabilities in addition to working with affiliated and third party organizations.

 

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."  Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements.  These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances.  Actual events or results could differ materially from the Company's expectations or projections.”

For more information on the Company, interested parties should review the Company's filings that are available at www.sedar.com. 

FOR FURTHER INFORMATION PLEASE CONTACT:

Tracy A. Moore

Chief Executive Officer

canadarareearth%23com|tmoore

Peter Shearing

Chief Operating Officer 

canadarareearth%23com|pshearing

Tel: (604) 638-8886

Website:  www.canadarareearth.com

 

 

 

 
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